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Cup and handle

Not tested by us Not tested by us yet. No verdict stamp.

In one line: A rounded dip (the cup) followed by a small dip (the handle).

It looks like a tea cup from the side. First a U-shaped dip. Then a smaller drift down (the handle). Then price pushes up again.

What traders claim: a break above the cup's rim starts a new rise.

No peer-reviewed study specific to cup and handle in our research so far.

Evidence: see Do chart patterns work? What the research says. In short: mixed, and very sensitive to how you define the pattern.

Related

Sources & studies

  1. Investopedia (secondary): Cup and handle

Chart and candlestick patternsDouble top and double bottomSupport and resistance

Last checked: 2026-11-04 · Educational, not financial advice.

Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.